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santaClause

full member

Activity: 183

Merit: 100

Quote from: ?? on ??

Quote from: chriswilmer on October 05, 2014, 10:57:55 PM

What doesn't make sense about what you say is that the valuation would be determined by Bitstamp. I would think that the valuation is determined by wherever the largest volume of trades is occurring. If that's happening OTC, fine, then OTC is setting the price. Why would large volume bitcoin traders care what some "small time" exchange has to say on the matter?

Because it's the most well known. Simple.

There is no central "authority" on price for the OTC market. Those trading over-the-counter look to exchanges in determining market value.

Bitstamp is the most recognized.

This is technically true, however the OTC market does influence the bitstamp market as well. If someone buys bitcoin on the OTC market form someone that would have otherwise sold on bitstamp then there would be a little bit less selling pressure on bitstamp.

It is also not possible to effectively control the price on an exchange

deepceleron

legendary

Activity: 1512

Merit: 1036

Most services needing a price (like if you were running an ATM) either use the price of the exchange they will be executing an instantaneous trade on, or they will use a exchange rate weighted by volume across many exchanges and averaging a recent period, perhaps even using a forumula anticipating the trend to stay ahead of the average.

cypherdoc

legendary

Activity: 1764

Merit: 1002

Quote from: nuff on October 05, 2014, 11:19:00 PM

anyone who does not recognize the fact that bitcoin prices now are manipulated to be way below production cost and not take the opportunity now to hoard up, they're missing out big time. My only problem is that my fiat don't come in fast enough to convert to bitcoins Sad

yep, they are on sale.

nuff

sr. member

Activity: 266

Merit: 250

anyone who does not recognize the fact that bitcoin prices now are manipulated to be way below production cost and not take the opportunity now to hoard up, they're missing out big time. My only problem is that my fiat don't come in fast enough to convert to bitcoins Sad

cypherdoc

legendary

Activity: 1764

Merit: 1002

all OTC prices should be based on one of the blended indices out there. not Stamp. they're clearly into bullshit.

Malte

member

Activity: 63

Merit: 10

Well I don't think its stupid, it also means the reference price is from where it is the hardest (or most expensive) to be manipulated, so fair.

But I'm wondering if you have any data regarding the OTC market volume?

cypherdoc

legendary

Activity: 1764

Merit: 1002

Quote from: chriswilmer on October 05, 2014, 10:57:55 PM

What doesn't make sense about what you say is that the valuation would be determined by Bitstamp. I would think that the valuation is determined by wherever the largest volume of trades is occurring. If that's happening OTC, fine, then OTC is setting the price. Why would large volume bitcoin traders care what some "small time" exchange has to say on the matter?

he's right. it's stupid but correct. i've seen this in action.

chriswilmer

legendary

Activity: 1008

Merit: 1000

What doesn't make sense about what you say is that the valuation would be determined by Bitstamp. I would think that the valuation is determined by wherever the largest volume of trades is occurring. If that's happening OTC, fine, then OTC is setting the price. Why would large volume bitcoin traders care what some "small time" exchange has to say on the matter?

Devin Chow

newbie

Activity: 53

Merit: 0

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